Gross profit totaled $1.82 billion, a year-over-year increase of 50.2%. Gross margin of 47.4% increased 690 basis points year-over-year, principally due to favorable pricing and improved product mix partially offset by inflation of manufacturing input costs and was 140 basis points above the mid-point of the Company’s guidance.
Operating income increased 105.4% to $1.0 billion, compared to $489 million in the year-ago quarter. The Company’s operating margin increased 990 basis points on a year-over-year basis to 26.2% of net revenues, compared to 16.3% in the 2021 second quarter.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in both Automotive and in Power Discrete.
- Operating profit increased by 251.1% to $359.2 million. Operating margin was 24.7% compared to 9.5%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Analog, in MEMS and in Imaging.
- Operating profit increased by 42.1% to $268.4 million. Operating margin was 23.8% compared to 18.6%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue increased in both Microcontrollers and in RF Communications.
- Operating profit increased by 106.6% to $424.7 million. Operating margin was 34.0% compared to 22.9%
Net income increased to $867 million and diluted earnings per share to $0.92 compared to $412 million and $0.44, respectively, in the year-ago quarter.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q 2 202 2 | Q 1 20 2 2 | Q 2 20 2 1 | Q 2 202 2 | Q 2 20 2 1 | TTM Change |
| Net cash from operating activities | 1,056 | 945 | 602 | 3,777 | 2,591 | 45.8% |
| Free cash flow (non-U.S. GAAP) | 230 | 82 | 125 | 1,046 | 873 | 19.8% |
Capital expenditure payments, net of proceeds from sales, were $809 million in the second quarter. In the year-ago quarter, capital expenditures, net, were $438 million.
